Paramount takes over Netflix’s Bay Theater in Pacific Palisades, plans reopening
Paramount Pictures has taken over the lease for the Bay Theater in Pacific Palisades, aiming to bring the big screen back to the community after the January 2025 Palisades fire. The theater has been sitting dark since the fire, but it is set for a major comeback later this year.
According to Rick Caruso, the real estate mogul behind Palisades Village, Paramount plans to pour some serious cash into upgrades. We are talking top-notch projection systems and the convenience of in-seat food and drink service. The theater will be run by the Lot, a fancy dine-in chain from La Jolla, and will show brand new movies from all the major studios, not just Paramount.
Caruso said the idea came up over lunch last year with David Ellison, the head of Skydance, while they were chatting about the Paramount buyout. Ellison is a huge believer in the magic of the movie theater and wanted to help preserve that shared community experience. “This theater is more than just a place to watch films,” Ellison noted. “It’s a key part of what holds this neighborhood together.”
The Palisades Village mall itself survived the fire but needed over $100 million in work to clean up and rebuild, finally reopening in August. As for the deal details with Paramount, Caruso kept it hush-hush, only calling it a long-term commitment, while Paramount stayed quiet on how much they are investing.
Netflix had run the Bay Theater since 2021, using it for special screenings, classics, and their own Netflix movies. Caruso thanked Netflix’s Ted Sarandos, calling them great caretakers of the venue and saying he handled the transition like a true gentleman.
This news drops just a week after Paramount finished its massive merger with Warner Bros. Discovery, forming Skydance. The new company has to release at least 30 films a year as part of a deal to settle antitrust worries with a bunch of states. Ellison has been vocal about his love for the big screen, promising to keep theatrical releases alive and well.
